Surveyor downvalued our property - no explanation given, what can we do?(32 Posts)
I hope someone can help me, we've found a gorgeous property that we love in the perfect area.
We agreed a price (the sellers came down considerably from their original asking price, over 10%), and started the mortgage process.
The property is fairly unique, grade 2 listed, but other (larger) properties in the same complex have been sold at higher prices, for their original asking price.
The mortgage surveyor has downgraded the price by a considerable sum, which basically means that we can't afford to buy the property (I'm not asking the seller to come down further, it wouldn't be fair and it isn't right - the house is definitely worth what we've agreed to pay, in fact we're getting a bargain).
We're getting a second survey (the vendors are paying half), but do we have any comeback against the original surveyor, I want to see his comparables etc but I'm told by his firm that he doesn't have to provide anything over the valuation.
This is setting us back and costing us money, I'm really unhappy about it.
I hope this makes sense, hopefully someone can advise.
Maybe he is doing you a favour. I wouldn't see a surveyor down valuing a property as a bad thing!
I read on the money saving expert website a while ago that this is very common. Apparently, if the bank repossess the house and lose money, the surveyors are the only party who can be sued for losses. I should stress, I read this, I don't know this myself.
Obviously, if this is correct, surveyors will be extremely cautious with valuations so they cannot be held liable if the bank loses money.
I agree that it is the bank's valuation, not yours, and therefore the surveyor doesn't need to speak to you to explain the reasons (but may do so). As regards comparables, it is worth asking whether he included the other property in the development, but you must recognise that the valuer is at liberty to choose whichever comparables he thinks are the most useful. It is usual now to only refer to completed sales, and there is a time lag between sales actually completing and them being formally reported at the Land Registry etc. It may be that he can't use it, if he can't get access a written record confirming the sale price.
I spoke to the surveyor when buying my house. They were refusing to value it without certain info. So I spoke to them at length to find out what they wanted and to disagree with one thing they wanted as it wasn't necessary.
It can't hurt to try and talk to them.
In our case our surveyor did downvalue our house. Which I also thought was ridiculous although could appreciate the difficulty in valuing a project. We did not remegotiate as we knew they could sell it at that price.
We reduced our borrowing (so have less of a budget to do the work) but have retained our 60per cent mortgage. We could have borrowed the same and got different rates, agreed to do work and have additional funds released later or tried to negotiate the price. They were our options.
Surveyors and industry professionals base all their calculations on price per sq meter (or feet), not sure why estate agents and the public don't use the same method as it saves a whole lot of hassle, guessing and estimating for everyone. That way you could easily find out £/sqm for property in any given location and then add or deduct for extra features or repairs.
Based on the above its unlikely that the surveyor has got it wrong - perhaps repairs are needed and grade II repairs are more expensive than standard houses.
As you did not employee the surveyor, your mortgage company did I will suprised if he will talk to you. We have just had a survey done for remortgage perposes and we don't even know how much our house was valued at, just that the % LTV was in the bracket we required so we know roughly how much.
You say it is grade II listed, could this be the problem ? As I personally would not go anywhere near a listed building. Maybe if the mortgage company had to get shot of it quickly then this could cause problems ?
You could always try a different lender, therefore a completely different surveyor. I know this is more money and time wasted.
god sounds a nightmare. Is it just a very difficult house to value?
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